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AMERICAN HARDWARE MANUFACTURERS ASSOCIATION
Terrence V. Gallagher
Manager of Communications
801 North Plaza Drive
Schaumburg, Illinois 60173
847-592-3504
tgallagher@ahma.org

P.R. # AHMA10-10

FOR IMMEDIATE RELEASE

March AHMA Confidence Index Shows Current Sales Levels Improving, Expectations for Future Sales Declining

Manufacturers Also Express Doubts about Benefits of Health Care Reform and Disapproval of National Labor Relations Board Recess Appointment

Schaumburg, Illinois, April 7, 2010 —The American Hardware Manufacturers Association’s AHMA Home Improvement Industry Confidence Index’s Current Situation Index improved in March to 183.3 from 162.5 in February (October 2008 = 100), while the Future Expectations Index declined slightly to 220.7 from 229.3 a month earlier.

In comparing current sales levels to year-ago levels, 44 percent of respondents said sales were higher in March versus year-ago levels, up from 39 percent in February.  For March, 30 percent reported sales were even, and 26 percent said sales were below year-ago levels.

Looking forward six months, 56 percent of March respondents said they expect sales to be above current levels, down from 57 percent in February.  In March, 34 percent of respondents said they expect sales to be even in six months and just 10 percent expect sales to be below current levels.

Looking forward one year, 72 percent of respondents project sales will be higher, down from 76 percent who felt that way in February.  Twenty percent of March respondents project sales will be even one year from now and eight percent project sales will be below current levels.

Timothy S. Farrell, President and Chief Executive Officer of the American Hardware Manufacturers Association (AHMA), said:  “While our members’ sales levels continue to rise versus year-ago levels, it is important to remember that year-ago sales levels were very weak.  And with just 44 percent reporting higher sales, it is clear that the headwinds of negative macroeconomic forces, especially in the areas of employment and housing, continue to present an extremely challenging sales environment for the hardware / home improvement industry.”

“Hot Topic” Questions

The March Confidence Index survey asked two supplemental questions of AHMA members:

“Now that the Health Care Reform Act has passed, how do you feel it will affect your company’s ability to provide affordable, quality health care insurance to your employees?” and “Do you approve of President Obama’s recess appointment over this past weekend of Craig Becker to the National Labor Relations Board?”

To the first question, on passage of the Health Reform Act, eight percent responded “Positively,” 50 percent responded “Not sure,” and 42 percent responded “Negatively.”

On their opinion of the recess appointment of Craig Becker to the National Labor Relations Board, two percent responded “Yes,” 49 percent responded “Not Sure,” and 49 percent responded “No.”

About the AHMA Home Improvement Industry Confidence Index

The AHMA Home Improvement Industry Confidence Index is a monthly indicator of the economic health and “mood” of the industry based on a survey of AHMA members.

The data collected from the survey produces two Indexes indicating:  1) Current Situation and  2) Future Expectations.  Both Indexes use survey data from October 2008 as the base reference point so that October 2008 = 100.

The AHMA Home Improvement Industry Confidence Index results are released on the first Wednesday of every month.

Results of the Index survey are viewable online here: http://www.ahma.org/ConfidenceIndex/March2010Results.   

About the American Hardware Manufacturers Association (AHMA)

AHMA is a globally focused trade association of manufacturers, or providers, of hardware, home improvement, lawn and garden, paint and decorating, building and construction and related products, as well as manufacturers’ representative’s agencies and trade publications.

AHMA offers many valuable member and industry programs, services and activities including the AHMA Hardlines Technology Forum, AHMA / USA International Pavilions, AHMA Advantage GPO, the AHMA eAGLE, The Hard Fax: Home Improvement Industry News, The Hard Fax International: Home Improvement Industry News from Around the World, the AHMA Home Improvement Industry Confidence Index, the AHMA Home Improvement Industry Dashboard, Government Relations Programs, Member Benefit Vendor Programs, the AHMA Hardware Industry Relief Effort (HIRE) and the AHMA / Habitat for Humanity Partnership.

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